'Mittal's fault'

The minister, who previously opposed the closure of a Peugeot factory, accused the company of "overwhelming lies" and said the Florange closure breaks a promise made by chief executive Lakshmi Mittal during Mittal Steel's 26.9bn-euro (£21.8bn) takeover of Arcelor in 2006, which was strongly opposed by French ministers.

The problem "isn't the furnaces in Florange, it's Mittal", said Mr Montebourg.

Mr Mittal, the Indian-born chief executive, is expected to meet with President Francois Hollande on Tuesday to discuss the group's operations in France.

The talks come ahead of a deadline on Saturday which Mr Mittal gave the state to find a buyer for the two idled blast furnaces in Florange, a traditional steel town in north-eastern France.

The government says it has received two offers, but only for the entire site. Mr Mittal has refused to sell the full operation, which employs a total of 20,000 workers.

Nationalisation?

As a result, Mr Montebourg has said he is exploring how to seize the entire Florange site should Mr Mittal refuse his demands.

According to the French newspaper, Mr Montebourg's idea "would be a partnership with a minor manufacturer, the time to stabilise activity" in Florange.

Jean-Louis Borloo, a conservative politician and a former environment minister, also supported Mr Montebourg's efforts.

"France's steel industry needs to live - there are 2,200 people on the site, 22,000 Arcelor Mittal employees in France and globally, there are 75,000 [employees involved in steel]," he told France Inter radio.

"And the idea that the government, along with its sovereign wealth fund and partners like Eramet and Ascometal (mining and metallurgical groups), reflect upon a temporary state control... does not seem inappropriate."

The Mittal family said they were "extremely shocked" by Mr Montebourg's attacks on the steelmaker.

One person close to the group said: "These are pretty violent comments towards a group that employs 20,000 people in France."